Saving money is not easy, especially when you have a low income. But it is not impossible either. With some smart strategies and discipline, you can build a financial cushion that can help you achieve your goals and secure your future. In this blog post, we will share with you 15 tips on how to save money fast on a low income in 2024.

These tips are based on the latest data and expert advice from various sources. Let’s get started.

Consider reading: Best Financial and Money Savings Hacks

1. Track your expenses meticulously

The first step to saving money is to know where your money is going. Keep a detailed record of all your expenses, including small purchases. Use budgeting apps or spreadsheets to categorize and analyze your spending patterns, enabling you to identify areas where you can cut back and save more.

Summary: Tracking your expenses helps you to see how much you spend and where you can save.

2. Use the 50/30/20 rule

The 50/30/20 rule is a simple and effective way to budget your money on a low income. It works like this: you allocate 50% of your after-tax income to your needs, 30% to your wants, and 20% to your savings and debt repayment. This way, you can cover your essential expenses, enjoy some of your desires, and build your savings at the same time.

Summary: The 50/30/20 rule helps you to balance your spending and saving.

Consider reading: What is Financial Planning and Types

3. Start a side gig

One of the best ways to save money fast on a low income is to increase your income. And one of the easiest ways to do that is to start a side gig. A side gig is any work that you do outside of your main job to earn extra money.

It can be anything from online freelancing, blogging, tutoring, pet sitting, to selling your crafts or skills. In 2023, there are plenty of opportunities to find a side gig that suits your schedule, interests, and abilities.

Summary: A side gig can boost your income and help you save more money.

4. Save your coins

You might think that coins are not worth much, but they can add up to a lot of money over time. Instead of throwing away your coins or spending them on trivial things, save them in a jar or a piggy bank. You will be surprised by how much money you can accumulate by saving your coins. You can also deposit them at your bank or exchange them for cash at a coin machine.

Summary: Saving your coins is a simple and effective way to save money.

5. Invest as well as save

Saving money is not enough if you want to grow your wealth. You also need to invest your money wisely. Investing means putting your money into something that can generate more money in the future, such as stocks, bonds, mutual funds, or real estate.

Investing can help you beat inflation, earn passive income, and achieve your long-term goals. However, investing also involves risks, so you need to do your research, diversify your portfolio, and start small.

Summary: Investing your money can help you make your money work for you.

Consider using our Investment Goal Calculator to set your investment goal.s

6. Reduce your internet bill

The internet is a necessity in today’s world, but it can also be a huge expense. According to a report by DecisionData, the average monthly internet bill in the US was $66.17 in 2020, and it is expected to rise in 2023. To save money on your internet bill, you can try some of these tips: compare different providers and plans, negotiate with your current provider, bundle your services, use public Wi-Fi, or switch to a cheaper or slower plan.

Summary: Reducing your internet bill can help you save money on a recurring expense.

7. Choose one paid streaming service

Another way to save money on your entertainment expenses is to limit the number of paid streaming services that you subscribe to. Streaming services such as Netflix, Hulu, Disney+, Amazon Prime Video, and HBO Max offer a wide range of movies, shows, and documentaries, but they also charge a monthly fee that can add up quickly.

To save money, you can choose one streaming service that offers the most content that you like, and cancel the others. You can also share your account with your family or friends, or take advantage of free trials and discounts.

Summary: Choosing one paid streaming service can help you save money on your entertainment expenses.

8. Do a no-spend month

A no-spend month is a challenge where you only spend money on your essential needs, such as rent, utilities, food, and transportation, and avoid spending money on anything else, such as eating out, shopping, or entertainment. 

A no-spend month can help you save a lot of money in a short period of time, as well as break your bad spending habits, reset your budget, and appreciate what you have.

Summary: A no-spend month can help you save money fast and change your mindset.

9. Use coupons and cashback apps

Coupons and cashback apps are great tools to save money on your everyday purchases. Coupons can help you get discounts or freebies on various products and services, such as groceries, clothing, restaurants, or travel. You can find coupons online, in newspapers, magazines, or flyers, or on apps such as Groupon, RetailMeNot, or Ibotta.

Cashback apps can help you get a percentage of your money back when you shop online or in-store, such as Rakuten, Swagbucks, or Dosh. You can also combine coupons and cashback apps to maximize your savings.

Summary: Coupons and cashback apps can help you save money on your everyday purchases.

10. Cook at home and pack your lunch

Eating out can be convenient and enjoyable, but it can also be expensive and unhealthy. According to the Bureau of Labor Statistics, the average American household spent $3,526 on food away from home in 2019, which is about 10% of their total spending.

To save money on food, you can cook at home and pack your lunch more often. Cooking at home can help you save money on ingredients, avoid tips and taxes, and control your portions and nutrition. Packing your lunch can help you save money on restaurant bills, delivery fees, and gas. You can also plan your meals ahead, use leftovers, and buy in bulk to save more money.

Summary: Cooking at home and packing your lunch can help you save money on food.

11. Cut down your energy costs

Energy costs can be a significant part of your monthly expenses, especially in the winter and summer seasons. According to the US Energy Information Administration, the average monthly residential electricity bill in the US was $115.49 in 2020, and it is projected to increase in 2024. 

To save money on your energy costs, you can try some of these tips: adjust your thermostat, use energy-efficient appliances and light bulbs, unplug unused devices, use natural light, insulate your home, or switch to a cheaper or renewable energy provider.

Summary: Cutting down your energy costs can help you save money on a recurring expense.

12. Shop smartly

Shopping is a necessary and enjoyable activity, but it can also be a source of overspending and debt. To save money on shopping, you need to shop smartly. Shopping smartly means that you only buy what you need, not what you want.

It also means that you compare prices, look for deals, use coupons, shop online, buy secondhand, or shop in bulk. You can also set a shopping budget, make a shopping list, and avoid impulse buying.

Summary: Shopping smartly can help you save money on your shopping expenses.

13. Automate your savings

Automating your savings means that you set up a system where a certain amount of money is automatically transferred from your checking account to your savings account every month, or every time you get paid.

Automating your savings can help you save money fast on a low income, because it eliminates the temptation and hassle of spending or saving manually. It also helps you to pay yourself first, which is a key principle of saving money. You can use online banking, apps, or tools to automate your savings.

Summary: Automating your savings can help you save money without thinking.

14. Build an emergency fund

An emergency fund is a stash of money that you set aside for unexpected events, such as medical bills, car repairs, job loss, or home repairs. Having an emergency fund can help you save money fast on a low income, because it prevents you from using your credit cards or loans to pay for emergencies, which can lead to high interest rates and fees. It also gives you peace of mind and financial security. Experts recommend that you have at least three to six months of living expenses in your emergency fund.

Summary: Building an emergency fund can help you save money and avoid debt.

Consider reading: What is an Emergency Fund and How to Build one

15. Pay off your debt

Paying off your debt is one of the best ways to save money fast on a low income, because it frees up your money from paying interest and fees. Debt can also hurt your credit score, which can affect your ability to get loans or mortgages. To pay off your debt, you can use some of these strategies: make a debt repayment plan, pay more than the minimum, use the debt snowball or avalanche method, consolidate your debt, or negotiate with your creditors.

Summary: Paying off your debt can help you save money and improve your credit.

Final Thoughts on How to Save Money Fast on a Low Income in 2024

Saving money fast on a low income is not easy, but it is possible. By following these 15 tips, you can reduce your expenses, increase your income, and build your savings. Remember, saving money is not a one-time event, but a habit that you need to practice consistently.

Start small, be realistic, and celebrate your progress. You can do it!

FAQs on How to Save Money Fast on a Low Income in 2024

How can I save money if my income is low?

Saving money on a low income involves creating a budget to track expenses, cutting unnecessary costs, cooking at home instead of dining out, and seeking discounts or coupons. Additionally, consider a savings challenge, like saving small denominations or rounding up purchases to save the change.

How save $5,000 3 months on low income?

In three months, while living on a low income, you can achieve your $5,000 goal by implementing a disciplined financial plan. Start by crafting a meticulous budget to effectively control your expenses, trimming any unnecessary costs. Additionally, explore opportunities for additional income through part-time jobs or freelancing.

How do you save when you are broke?

Saving money when you’re broke involves smart budgeting and cost-cutting techniques. Begin by tracking your expenses, eliminating non-essential purchases, and seeking out free entertainment options. Prioritize debts to avoid high-interest rates, cook meals at home, and use public transportation. Additionally, consider a side hustle for extra income and always shop with a list to avoid impulse buying

How can I save $1000 fast?

To save $1,000 quickly, follow a strict budget, cut unnecessary spending, and increase your income with side jobs. Selling items you no longer need, setting up automatic savings transfers, and reducing dining out can accelerate your saving pace. Commit to a timeline and stay disciplined with your financial goals.